Wednesday tips round-up: Inchcape, Hays, Elementis
Inchcape's exposure to the weakening UK car market has contributed to the 27 per cent decline in the share price over the past year. But as the international drive builds up, so the UK will soon take on much less significance. The shares are trading on a multiple of 10 times 2008 earnings. Buy, says the Independent.
Hays remains a good long-term proposition - the shares are cheap, trading on 9.2 times full-year 2008 earnings in June - but it's too soon to start buying again in earnest. Hold. says the Telegraph.
Speciality chemicals now account for three quarters of operating profits, with Elementis' exposure to oilfield services - it provides additives used in drilling - serving it especially well. However, although the company says 2008 has started well, its order book is short. Further, its discount to peers Victrex and Croda International - at 77½p, the shares trade at ten times current-year earnings - is not compelling given slower profit growth. Avoid, says the Times.
Dechra is firing on all fronts. The home market is strong, further sales growth in Europe is likely following the acquisition, while approval for its key drugs in the US will provide a big sales boost. The shares have risen 26 per cent in a year and look up with events for the time being. Hold, says the Independent.
(Article continues below)Advertisement
At 12 times next year's earnings, Ashmore may trade at a premium to the likes of Schroders, but that rating appears to be deserved, given forecast earnings growth of 40 per cent this year and 20 per cent next. Tuck away for the long term, says the Times.
First Artist is expected to make £3.6m for the year, leaving the shares on less than 5 times earnings, after slipping 15 per cent in the last three months. A fickle business in these uncertain times, but worth holding at current levels, says the Independent.
Beazley has risen 8pc since our last tip, and is yielding just under 4pc. Hold on, says the Telegraph.
Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.
